Retailer is replacing model of basic salary plus benefits with total cost-to-company remuneration
01 July 2024 - 18:29
byNompilo Goba
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Retail giant Mr Price Group has refined its remuneration structure to align with industry best practices.
In its 2024 annual report released on Friday, the group announced a phased transition from a basic salary plus benefits model to a total cost-to-company remuneration framework, a shift aimed at assuring flexibility and transparency in remuneration management.
The transition, which began in October 2023, is structured in phases to ensure smooth implementation and to mitigate any potential change frustration among employees.
“As part of phase one, the group has restructured its retirement fund contributions. The employer now solely contributes 7.5% to the retirement fund, with the mandatory employee contributions being eliminated. Employees were given the option to make additional voluntary contributions based on their personal financial goals,” the company said.
“In the second phase, the employer’s contributions to medical aid and gap cover were converted to cash and added to employees’ basic salaries to allow them to choose their preferred level of medical cover, either through the group’s current schemes or by opting for alternative plans.”
The group said further changes are slated for the 2025 financial year.
CEO Mark Blair saw an increase in his total remuneration for the year ended March 2024 to R45.9m from the previous year’s R10.7m. This spike was primarily driven by a long-term incentive increase of R27.1m and a short-term incentive of R9.6m.
Double
CFO Praneel Nundkumar also saw a rise in his remuneration, earning R16.5m. That is more than double the R6.8m received in the previous year.
The company reported a 67% increase in retail sales to R37.8bn and a 24% increase in profit attributable to shareholders in the year under review.
Blair said the success was driven by strategic acquisitions and the introduction of Mr Price Cellular and Mr Price Kids.
“Our growth was supported by making three strategic acquisitions into new segments and markets, while simultaneously evaluating several new organic concepts, two of which have been brought to market and are showing great promise: Mr Price Cellular and Mr Price Kids. Importantly, we also declined numerous opportunities that did not meet our stringent requirements,” he said in his letter to shareholders.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mr Price changes the way it pays staff
Retailer is replacing model of basic salary plus benefits with total cost-to-company remuneration
Retail giant Mr Price Group has refined its remuneration structure to align with industry best practices.
In its 2024 annual report released on Friday, the group announced a phased transition from a basic salary plus benefits model to a total cost-to-company remuneration framework, a shift aimed at assuring flexibility and transparency in remuneration management.
The transition, which began in October 2023, is structured in phases to ensure smooth implementation and to mitigate any potential change frustration among employees.
“As part of phase one, the group has restructured its retirement fund contributions. The employer now solely contributes 7.5% to the retirement fund, with the mandatory employee contributions being eliminated. Employees were given the option to make additional voluntary contributions based on their personal financial goals,” the company said.
“In the second phase, the employer’s contributions to medical aid and gap cover were converted to cash and added to employees’ basic salaries to allow them to choose their preferred level of medical cover, either through the group’s current schemes or by opting for alternative plans.”
The group said further changes are slated for the 2025 financial year.
CEO Mark Blair saw an increase in his total remuneration for the year ended March 2024 to R45.9m from the previous year’s R10.7m. This spike was primarily driven by a long-term incentive increase of R27.1m and a short-term incentive of R9.6m.
Double
CFO Praneel Nundkumar also saw a rise in his remuneration, earning R16.5m. That is more than double the R6.8m received in the previous year.
The company reported a 67% increase in retail sales to R37.8bn and a 24% increase in profit attributable to shareholders in the year under review.
Blair said the success was driven by strategic acquisitions and the introduction of Mr Price Cellular and Mr Price Kids.
“Our growth was supported by making three strategic acquisitions into new segments and markets, while simultaneously evaluating several new organic concepts, two of which have been brought to market and are showing great promise: Mr Price Cellular and Mr Price Kids. Importantly, we also declined numerous opportunities that did not meet our stringent requirements,” he said in his letter to shareholders.
GobaN@businesslive.co.za
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